Use the Following Information for Questions 47 and 48

question 39

Multiple Choice

Use the following information for questions 47 and 48.
On January 1, 2012, Nobel Corporation acquired machinery at a cost of $1,200,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2015, a decision was made to change to the double-declining balance method of depreciation for this machine.
-Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is

• A) $134,400.
• B) $0.
• C) $157,920.
• D) $225,600.

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Definitions:

Years of Schooling

The total number of years that an individual has spent in formal education.

Inductive Reasoning

Reasoning that involves drawing conclusions that are suggested but are not necessarily true.

Deductive Reasoning

Drawing conclusions from only the given premises.

Fourth Grade

Refers to the fourth year of formal education in most primary education systems, typically involving students aged 9 to 10 years.